The federal government has issued a strong warning to cooking gas distributors against hoarding and hiking prices amid rising consumer concerns over scarcity and cost.
The government also ordered intensified monitoring of Liquefied Petroleum Gas (LPG) depots across the country to prevent product hoarding and other sharp practices, as the retail price continues to be high.
The minister of state for Petroleum Resources (Gas), Ekperikpe Ekpo, who have this warning, said the government was concerned about the price of LPG, which has risen from between N1,000 and N1,100 per kilogramme to as high as N1,500–N1,700 per kilogramme in some parts of the country.
Noting that the LPG market is deregulated, he, however, appealed to marketers, distributors, and all stakeholders along the LPG value chain to be patriotic in their dealings, desist from hoarding, and refrain from exploiting consumers for profit.
To ensure compliance, the minister mandated the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify monitoring of LPG depots across the country to prevent product hoarding and other sharp practices that could worsen the current situation.
The minister attributed the price hike to the industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at the Dangote Refinery, which temporarily halted LPG loading.
He also highlighted the impact of the ongoing maintenance activities at the Nigeria LNG Train 4 facility which, he said, reduced the volume of LPG available in the domestic market.
“These disruptions led to a shortfall in supply and a consequent price increase due to a demand–supply imbalance.
“The situation is temporary and will normalise very soon as operations at the Dangote Refinery have now resumed, with loading of LPG to the domestic market already underway.
“Similarly, the Bonny River Terminal operated by Seplat Energy has commenced loading, while the Nigeria LNG is gradually restoring normal operations as maintenance nears completion.”
According to him, wiith these developments, supply to the domestic market is expected to stabilise by next week, leading to a gradual reduction in price.
He reassured Nigerians that the federal government was committed to ensuring sufficient and affordable gas supply to all households nationwide.
